The current economic crisis going on in our country today demands that every entrepreneur or business owner should learn how to survive Economic recession in Nigeria.
A whole lot of businesses experienced failure in Nigeria due to the fact that they owners didn’t expect it or they did not know how to survive it.
Even under a buoyant and thriving economy, you still need to know how to survive recession.
Have you noticed that even during this recession, a number of people live quite comfortably as if everything is fine which actually it is and you wonder how they do it?
The reason is that they have mastered the necessary skills to help them survive economic recession in any place or country they are and not only survive, but thrive comfortably.
Surviving Recession is not difficult provided you have the will and determination to do so. You need to be willing to do so because there many who ‘wish’ to survive it but are not ready and willing with their actions.
But before we jump right in
What really happens during an economic recession?
That’s a good question
When recession start you will see that
- Good and services tend to increase. In economics, it’s called inflation.
- Most people who can’t survive it migrates to another country.
- It scares investors away.
- It affects business owners
- Some companies begin to lay off some of their employees
How to Survive Economic Recession
1. Know Your Current Financial Status
This is something we call clarity.
It is the first step to survive economic recession. You need to measure your current financial status.
You can do this by calculating your total salary or Income in a month, total expenses you make in a month.
By doing this, you get to see loopholes or unnecessary expenses you make which are consuming any spare income that is left.
2. Plan a Budget
Budgeting is a very important skill you need to know if you want to know how to survive recession.
You need to know how to make a simple budget that will cover in details; how much you intend to spend in a month.
3. Create a Savings Plan
Create a Savings Plan. As simple as it is.
You don’t have to save a big load of cash. You can save in trickles.
Let’s say you earn an Income of 20,000 Naira. Imagine you save at least 10% of it, which is 2,000 Naira every single month.
If you do this throughout the year, it will grant you a two-way benefit:
- You have learnt how to become disciplined with your income by living on 90% or less of it.
- You have spare cash you can use to cover unexpected expenses which might have gotten you broke.
But there’s more to that. Read on.
4. Invest spare Money in something worthwhile.
This is another major step on How to survive economic hardship.
It doesn’t matter if it’s in a business or in a savings account. Just make sure your spare money is working to generate more money.
Don’t fall for “Get rich quick” schemes as it is very risky and uncertain.
Take for Instance; the recently crashed MMM scheme on which a lot of Nigerians lost big money. It is usually made to last only for a while and after that, it vanishes. Beware of “Get rich quick” schemes!
You can check out these business ideas you can start with low capital
5. Get an Extra Source of Income
It is also necessary you have an extra source of Income other than your main source.
You could take up a part-time job, start a small business or you can even produce snacks or food and supply to people and organisations that need them.
Whatever Legitimate thing that you can do, that can also generate money aside from your main source of income, do it!
6. Never neglect business insurance
Whether you are a start-up or have an already existing business, you should never neglect insurance.
Investopedia defines Business Insurance as
“An insurance coverage that protects businesses from losses due to events that may occur during a normal course of business”.
To do this, you have to look out for business insurance companies and then register with them.
To wrap up this article, I will encourage you to read Recession proof businesses you can start (if you have not started any yet)
To survive economic recession is not going to easy. Sometimes you have to work harder and invest in something that makes money.
Thanks for taking your time to read to the end. Can you tell us which of the tips you used to survive economic hardship in Nigeria?
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